Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Aberdeen offers bonus clarity ahead of AGM

Aberdeen offers bonus clarity ahead of AGM

Aberdeen Asset Management has updated its executive pay policy ahead of its annual general meeting (AGM) on Thursday as investor groups raise concerns over aspects of the remuneration policy.

Aberdeen is among the first listed companies to hold a shareholder meeting since shareholders were given a binding vote on directors’ pay as a result of the Enterprise and Regulatory Reform Act 2013.

In its update Aberdeen said newly appointed executives at the firm run by Martin Gilbert (pictured) will not receive annual bonuses for their notice periods apart from in exceptional circumstances, such as ill-health.

Aberdeen’s annual report had revealed the contractual position for current executives is they are eligible to receive annual bonuses for notice periods in the event of their contracts being terminated.

An ‘amber top’ alert on Aberdeen was issued by the influential Association of British Insurers ahead of the AGM and some shareholders have revealed their intention to vote against the proposed pay policy.

A spokesperson for Aberdeen said:  ‘We do not believe in rewarding failure and executive bonus awards take account of key financial performance indicators. Three-quarters of any bonus earned is paid in company shares and released in tranches over four years. Bonuses can be clawed back in the event of serious misconduct or a significant failure in risk management.’

The chart below shows executive directors minimum (fixed) remuneration using base salaries for this year and provides an indication of the total remuneration for a year of good performance using annual bonus figures for the year ending 30 September 2013. There is no cap on an individuals total remuneration at the group.

Aberdeen executive remuneration: Click to enlarge

Source: Aberdeen

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Dispelling the sustainable investing myths

Dispelling the sustainable investing myths

There's a bit of a buzz around sustainable investing at the moment. We speak to three wealth managers to find out what they think.

Play Inside ETFs: positioning for the Fed rate rise

Inside ETFs: positioning for the Fed rate rise

Natalie Fast discusses how investors are using ETFs to position for a rate rise with guests Irene Bauer from Twenty20  Investments and Markit's Simon Colvin.

Play Wealth Manager Retreat: video highlights

Wealth Manager Retreat: video highlights

The UK's leading wealth management talent gathered at our annual event at the Grove celebrate the best in private client portfolio management.

Wealth Manager on Twitter